Finance
A 'due-on-sale' clause in a mortgage or deed of trust requires that:
AThe full loan balance becomes due when the property is sold or transferred✓ Correct
BThe buyer must pay off the loan within 5 years
CThe seller must pay all remaining interest at closing
DThe lender must approve the sale price before it is finalized
Explanation
A due-on-sale (acceleration) clause allows the lender to demand full repayment of the loan balance if the property is sold or transferred without the lender's consent. This prevents unapproved loan assumptions.
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